NAI Ranks within Top Five in Commercial Real Estate Brands Survey

NAI Global, the world’s largest, most powerful network of owner-operated commercial real estate firms, earned the top five spot in the 2014 Lipsey Survey of Top 25 Commercial Real Estate Brands. The survey was conducted among 100,000 commercial real estate professionals using a combination of ballot voting, phone interviews and focus groups to identify the top global brands.

NAI Global is the only commercial real estate network represented in the top five. NAI Keystone Commercial &   Industrial, LLC is a member of NAI Global.

“We are proud that the strength of the NAI Global network is reflected in the results of this year’s Lipsey survey,” said Bryan Cole, Sr. Associate and SIOR of NAI Keystone Commercial & Industrial.

The survey is conducted by The Lipsey Company, a leading training and consulting firm specializing in the commercial real estate industry to equip organizations and their practitioners with the skills necessary to succeed in today’s competitive environment.

NAI Keystone is a part of the premier commercial real estate brokerage network in Pennsylvania providing expert services to both local and global clientele. Based in Reading, NAI’s services include acquisitions and dispositions, leasing, tenant representation, lease administration and audit, investment services, due diligence, and related consulting and advisory services. Pennsylvania commercial brokers specialize in industrial, office, retail, investment and multifamily properties.  Information can be found at www.Bryan-Cole.com

NAI_Keystone- Bryan-Cole

NAI Global provides a full-range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. NAI Global-member firms are leaders in their local markets and are actively managed to work in unison and provide clients with exceptional solutions to their commercial real estate needs. Founded in 1978, NAI Global-member firms span 55 countries, with 400 offices and more than 5,000 local market experts on the ground, completing $55 billion of transactions annually. Supported by the central resources of the NAI Global organization, member firms deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges.

NAI Global was acquired in 2012 by C-III Capital Partners, a commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, title services and multifamily property management.

Bryan Cole, SIOR | Sr. Associate

Bcole@naikeystone.com

NAI Keystone Commercial & Industrial, LLC

3970 Perkiomen Ave, Suite 200

Reading, PA 19606

www.Bryan-Cole.com or www.WyomissingOfficeSpace.com

Direct +1 610 370 8502 |Main +1 610 779 1400 | Fax +1 610 779 1985

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Does the Actual Space Measurement Really Matter?

The answer is  yes and no. Space measurement does not matter in cases where there is annual or monthly rent defined in the contract in terms of absolute dollars and there is no pass throughs of common area expenses to the tenants. In most other cases size matters and here is why.

Many contracts provide for a rental rate on a dollar per square foot basis. The basis may be rentable, gross, or usable and there are a number of alternative space measurement standards. In these cases, the rent is multiplied by the area of the demised premises so an incorrect rental rate can lead to a discrepancy between what is actually being rented and the amount of the rent.

It is not good practice to accept the landlord’s measurements.  There may be errors in the measurement or the basis for the measurement may not be the basis of your rental contract.

In summary, it is appropriate to have the space re-measured in the field and then applied to the rental rate. Rental rates using usable space (typically the carpeted area) are the most appropriate since one only pays for what is being utilized. Note that incorrect space measurements also affect pass through items so an incorrect measurement or application of the measure can have secondary effects
as well.

Article by NAI Global

Call a Tenant Representation Broker; they can assist in the process.

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole

NAI Keystone Commercial & Industrial, LLC

direct: 610-370-8502

Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

About Bryan Cole and NAI Keystone

Bryan joined NAI Keystone in early 2004, but before joining NAI, Bryan Cole spent 4 year’s active duty in the United States Marine Corp, including a 6 month deployment in Afghanistan, a 4 month deployment in Kuwait/Iraq, and a 7 month deployment in Japan. Prior to joining the military Bryan was involved in the construction of commercial and multi-unit properties in the Philadelphia suburbs. Bryan has experience working with a diverse group of individuals in numerous countries throughout the world. During Bryan’s time at NAI, he has sold and leased well over $150 Million Dollars worth of Commercial Real Estate. Because of this, Bryan earned NAI gold club status his first year in the business. Bryan is currently working on earning both his CCIM designation and SIOR designation. Bryan has been NAI Keystone’s Top Performer from 2006 – 2010.
NAI Keystone is a full service commercial and industrial real estate firm located in Reading, Berks County.  NAI Keystone manages and handles approxitmately 4 Million square feet of commercial and industrial space in Berks and Schuylkill County.  NAI is the only firm in Berks County dedicated to strictly commercial real estate.  www.Bryan-Cole.com.

1031 Exchange Activity Picks Up

1031 Exchange Activity Picks Up

Between 2002 and 2007, real estate investors and developers built tremendous wealth and preserved significant equity by using tax-deferred exchanges under Section 1031 of the IRS Code.  During the economic downturn, exchanges were used less frequently for preserving equity from the appreciation of real estate—mainly due to offsetting losses from other transactions or a general erosion of equity altogether.  More often, over the past few years taxpayers used exchanges as strategy for deferring potential tax liability from short sales and foreclosures.

However, taxpayers are again relying on exchanges now that some real estate assets are selling at a gain.

Exchange Trends

In August 2010, the volume of exchange transactions began to increase significantly.  This trend started with developers and investors selling singular assets and asset portfolios to large REITS and private equity funds that were looking to purchase assets with cash. Class A and B multifamily assets and single-tenant NNN assets were their typical targets.  These purchases fueled the start of new construction exchanges by many of the selling developers, especially in the single-tenant NNN industry.

The exchange trend has spread to larger, more institutional assets in the office and retail sectors.  Grocery-anchored retail centers have also been at the center of exchange activity.  The common underlying characteristic of the assets being sold in these exchanges has been the stability of the asset, often stemming from strong credit tenants.

 

 

For More Information about Local News, Market Intel, or Commercial Real Estate
Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole

NAI Keystone Commercial & Industrial, LLC

direct: 610-370-8502

Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

Space Planning and the Total Cost of Occupancy

The number of occupants and the space required per occupant are the key determinates to total cost of occupancy.  Consider that the occupancy costs are the multiplication of the rental rate per square foot plus the operating costs per square foot times the number of people and the space that each person occupies.  There are factors that add to the total space consumption including lost space from hallways, bathrooms, elevator cores, storage areas, atriums and reception areas.  This is often called the building loss factor and is an efficiency measure of the building.  To these losses also add the space required for cafeterias, special computer and server rooms and conference, training areas and other special spaces.

As you can see the quantities add up quickly.  Let’s use a simple example to show the impact of these numbers.

Assume 200 people at 150 SF per person.  The building loss factor is 20% and there are additional space uses of 10%.  The rent for office space is $20.00 PSF and the operating costs are $4.00 PSF.  The table below shows the total cost of occupancy at 150 SF per person and 130 SF per person.

 

 

150 SF Per Person

130 SF Per Person

Number of People

200

200

SF per Person

150

130

Space Required

30,000

26,000

     
plus Loss Factor

20%

20%

Lost Factor Space

6,000

5,200

     
Additional Space

10%

10%

Additional Space

3,000

2,600

     
Total Space Requirement

39,000

33,800

     
Rent plus Expenses

$24.00

$24.00

     
Total Occupancy Cost

$936,000

$811,200

     
Annual Cost Per Person

$4,680

$4,056

As you can see from the analysis, the annual total cost of occupancy goes up over $100,000 per year and the difference is over $600 per person per year for a small change in the space standards.  For large quantities of people, this difference becomes exceedingly large.  For a ten year lease, this is a $1 million difference in the two cases.  Said another way, the difference between to two cases on a per person basis is about $625 per year and this justifies the purchase of new furniture that typically runs $3000 to $4000 per individual.

 

by NAI Global

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

Preparing for Lease Administration

NAI is constantly evaluating tools for providing lease administration services to our clients.  However, determining the right solution for the client is not a casual effort.  Below are some of the key factors that need to be discussed and understood as you work through the process of setting up a lease administration solution.

  • Clearly understand the client needs and how that balances with their requests and perhaps more importantly their expectations.
  • It’s important to understand the timing for getting the system populated, tested and running. This is a critical element, as it is a major undertaking to make any system functional with the client information.
  • What data is available and in what format it’s stored in is critically important.  Before any system can function properly, it must have a core database of information. The effort to gather the data; have it prepared for entry; entered into the system and verified that the data is entered correctly can be time consuming, potentially expensive and is probably the most important work required to make any lease administration solution successful.
  • Obtaining key documents pertaining to the lease as the lease documents will need to be abstracted to provide the relevant information required for populating the chosen system solution. Documents used to provide information on leased property should be converted to electronic format and be stored within the lease administration system.
  • Determining the reports or output the client is expecting from the system is an excellent tool for defining the necessary fields required in the database structure.  Most systems will provide for the “normal” data requirements but your client may have a unique management structure or specific metric it wants included for each lease and these fields or data structures will need to be clearly      understood as the system and data is organized in the database.
  • Establish a process and responsibility for managing the system updates, imputing new leases, issuing reports and taking action as required.  Without this responsibility and process the lease administration system will quickly fail to function.

The above effort (if not already done) can be quite substantial and should be started immediately, even before you select a lease administration system that best fits your client’s needs.

I would suggest that if you collect the data mentioned above and implement a process to manage the lease activity, it will assist the effort in selecting a specific system, as there are quite a few good lease administrations systems available.

by NAI Global

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

Consolidation Accelerates Ahead of Market Recovery

Since the beginning of 2011, there has been a torrid level of M&A activity in the commercial real estate services industry. Recently announced deals include CBRE’s acquisition of the ING Real Estate fund management business; the sale of Newmark to financial derivatives house BGC; Colony Capital’s loan and exclusive look period with Grubb & Ellis; the recapitalization of DTZ by investment group SGP and the possible follow on merger with BNP Real Estate; and the hotly rumored takeover of King Sturge by JLL. And that is just on the services side. On the information side, Argus is selling to Altus and Costar is acquiring Loopnet.

That big money is being deployed to acquire and expand existing platforms is a clear sign that the commercial real estate market is in the early stages of recovery. Key metrics show both sales and leasing volume are up and in the major markets both rental rates and asset prices have recovered sharply for core assets. But there is a long way to go for secondary markets and non-core assets. As commercial real estate climbs out of the depths of the credit crisis, industry leaders are now looking to expand their depth and breadth of coverage in order to capitalize on opportunities.

There is little doubt that the big will get bigger and more consolidation will follow. The real question remains “how best to provide service?” Is it through a large corporate bureaucracy, best-in-class local providers or some combination that provides the requisite global infrastructure, quality control and support with the best local talent and client-centric approach? Clearly some of the recent M&A activity is following familiar strategic patterns, while others are dramatic course changes.

Over the past 40 years the commercial real estate industry has grown from a local business to a global industry with each economic cycle accelerating the transformation. Now more than ever global resources and reach are critical to serve commercial real estate clients at the local level. The trick is to be able to deliver local service at the global level. Finding the balance between entrepreneurial local market expertise and the institutional strength of a global company is the key to optimizing global real estate services. In the quest for scale and market share, the customer is often lost.

As the largest global managed network of commercial real estate firms we are committed to be a driver and leader in this industry transformation, evolving to serve the ever-growing needs of our clients without sacrificing the local touch and customer care we have been known for.  Contact NAI Keystone Commercial & Industrial, LLC who is the Reading’s premier commercial and industrial real estate firm.  visit www.Bryan-Cole.com for more information.

 

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

Pennsylvania 2011 Market Report

The PA Commercial Real Estate Market Report is ready.  Please see the link below; the report was compiled by various NAI offices.  For more information please send us an email at Bcole@naikeystone.com or check us out on the web at www.Bryan-Cole.com

Interactive Brochure:

http://www.bryan-cole.com/ibro/marketinfo/pa/pareport2011.html

Bryan E. Cole | Team Leader

NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502

Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com